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business valuations

BUSINESS VALUATION

If you are thinking of selling your business, you need to know what it is likely to sell for.  If your business is located in Eastern Massachusetts, our valuation service includes a meeting with you at your business to go over your financial statements, or tax returns, with you.

We recommend one of the valuations that we offer, listed below.  Our price includes a meeting with you to gather the information needed for the valuation.  We are so confident of the value of this business appraisal that if you have us provide this valuation to you, we will reduce the commission owed when we sell your business by the price of the valuation. All of these valuation reports are prepared by accredited appraisers.

Valuation Service & Price*

Value Analysis - $2,500

The Value Analysis is a restricted use business valuation designed specifically for the “main street” business with sales of $1,000,000 or less. The report is intended for “asset sale, financial buyers” and is approximately 40 pages providing only a summary of how the valuation conclusion was determined. The basis of this valuation is discretionary cash flow, since most main street businesses are bought and sold on a multiple of cash flow. The value considers primarily historical and current financial performance and very little time is spent with the Balance Sheet. The report contains the following (partial list of exhibits):

Historical Income Statement
Adjusted Cash Flow Statement
Comparable Sales (Market Approach)
Various Graphic Analyses
Summary Review of Each Valuation Approach
Valuation Conclusion and Justification

Limited Formal Valuation - $3,500 for sales under $4 MM. $5,000 if sales $4MM to $7MM. Contact us for a price for a valuation if sales over $7,000,000.

The Limited Formal Valuation is a restricted use business valuation intended for the standard small business with sales between $1,000,000 and $7,000,000. The report is intended for “asset sale, financial buyers” and is approximately 70 pages providing a detailed review of all aspects that were considered in determining the final valuation conclusion. The bulk of the report is financial analysis and the valuation conclusion is supported on much more detail. In addition to reviewing the company’s historical and projected earnings, the report also contains a detailed review of the Balance Sheet. The report contains the following (partial list of exhibits):

Historical Income Statement
Adjusted Cash Flow Statement
Complete Financial Statement Analysis
Common Size Analysis
Ratio Analysis
Industry Analysis
Economic, Regional and Industry Analyses
Comparable Sales
Detailed Description of Each Valuation Approach Considered and Used
Valuation Conclusion and Justification
Discounted Future Cash Flow Analysis
What-If, Hypothetical Transaction
Proof of Valuation
Valuation Matric

Merger & Acquisition Valuation - Contact us for a price.

The Merger & Acquisition Valuation is a comprehensive business valuation for transactional purposes and is developed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). This is a stock valuation and is intended for the middle market business with annual revenues in excess of $5,000,000, businesses that are expected to sell for more than $1,000,000, strategic acquisitions of niche businesses, and generally any business with significant growth expected in the future. The basis of the valuation is focused on future earnings and the selection of guideline companies comes from both the private and public markets. This report is a completely customized report and the number of pages can range from 30 to 200 depending on the information that is used to support the conclusion.

*We reserve the right to adjust this price if the appraisal project requires more work than expected. If so, we will provide the revised valuation price in writing for your approval before we begin the project.

Our independent valuations are prepared by appraisers with one, or more, of these accreditations:

ASA - American Society of Appraisers

CBA - Institute of Business Appraisers

ABV - American Institute of Certified Public Accountants

CVA - National Association of Certified Valuation Analysts




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